Emerging economies are becoming more like their rich counterparts
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Out of the traps
THESE ARE NOT your father’s emerging markets, notes Mark Dow, a money manager who used to work for the IMF, on his blog. The phrase alludes to a 1980s car advertisement contrasting a range of flashy new models with the tried-and-trusted versions bought by a previous generation. Today’s emerging markets are also different from earlier models. But unlike the cars, they are less exciting than their predecessors.
In the past, they suffered from a chronic lack of macroeconomic credibility. They could not persuade outsiders to hold their money or their debt through thick and thin, unless they ...